Building Financial Models, Third Edition: The Complete Guide to Designing, Building, and Applying Projection Models / Edition 3

by John S. Tjia

Overview

The go-to guide for developing effective financial analysis and valuation models—updated with new content and materials


This fully revised edition of Building Financial Models builds on the elements that have made it renowned in the field of financial modeling, including how to develop a sound conceptual understanding of accounting for modeling and how to apply the tools at hand, which are the two key attributes for producing effective and easy-to-use models. A classic in how-to books for designing and building financial models for use in a wide variety of finance roles, this edition includes:


* The latest Microsoft Excel shortcuts, functions, and modeling techniques
* A full chapter on accounting that takes the mystery out of the subject for modeling work
* Expert methods for building models that are easy to understand and superbly fit to the task
* New additional materials on valuation analysis and sections on scenarios and sensitivity analysis through the use of Data Tables


Supported by all-new exercise files from the companion website, this comprehensive guide takes you step by step through the entire process of developing a projection model, starting with a basic pilot model with each chapter introducing additional concepts and features. By the end, you will produce—through your own hands-on participation—a fully functional and dynamic integrated financial statement projection and valuation model.


With Building Financial Models, Third Edition, you have everything you need to boost your financial modeling expertise.

Product Details

ISBN-13:	9781260108828
Publisher:	McGraw Hill LLC
Publication date:	04/27/2018
Edition description:	New Edition
Pages:	432
Sales rank:	991,974
Product dimensions:	6.20(w) x 9.10(h) x 1.60(d)

About the Author

John S. Tjia is Principal at TMG & Associates, a consultancy providing modeling services to banking and corporate clients. He is a member on the Board of Advisors at IBP Institute, the credentialing organization for investment banking professionals. For 12 years, John was Executive Director in the Valuation & Business Modeling practice in Ernst & Young’s Transaction Advisory Practice in New York, leading modeling projects for Fortune 500 clients. He created and conducted many of the internal training courses for the 90-strong modeling team. Earlier, he was an investment banker at JP Morgan in Hong Kong and New York, where he also led the development of that global firm’s credit analysis and M&A models for use by the investment banking teams worldwide.

Table of Contents

Introduction

Acknowledgments


Chapter 1: A Financial Projection Model


Chapter 2: Best Practices


Chapter 3: Setting the Stage


Chapter 4: The Model Building Toolbox: F Keys and Ranges


Chapter 5: The Toolbox


Chapter 6: Accounting in Modeling


Chapter 7: Building a Pilot Model


Chapter 8: Circular References and Iterative Calculations


Chapter 9: Variations on Balancing


Chapter 10: The Cash Sweep and Interest Calculations


Chapter 11: Reorganizing the Model


Chapter 12: Scenarios and Other Tips


Chapter 13: Ratios


Chapter 14: Forecasting Guidelines


Chapter 15: Discounted Cash Flow Valution


Chapter 16: Using VBA for Balancing


Appendix


Index